US Says 75 Percent Of Indonesian Nickel Is Controlled By Chinese Companies

JAKARTA - An agency from the United States (US), C4ADS in its report said that 75 percent of nickel refining capacity in Indonesia is actually controlled by Chinese companies.

China's strong grip on Indonesian nickel is considered by an institution headquartered in Washington to raise concerns over nickel supply chain controls. Likewise with the risk of damaging the environment.

According to a C4ADS report, Indonesia's nickel refining capacity reaches 8 million metric tons. Then, distributed to 33 companies.

However, the C4ADS search noted that the company's ownership in the nickel industry in Indonesia overlapped with holders.

The C4ADS in its report concluded that in the end the Chinese companies controlled about three-quarters in 2023.

"Because Indonesia aims to use the nickel industry for economic growth, this large foreign influence (China company) can limit its ability to control and form the industry for its benefit," the C4ADS report said.

In fact, C4ADS appointed two Chinese companies, namely Tsingshan Holding Group and Jiangsu Delong Nickel Industry Co Ltd. In the report, these two companies control more than 70 percent of Indonesia's nickel refining capacity by 2023.

The two Chinese companies were part of the earliest investors when Indonesia began to aggressively encourage nickel ore processing in the country.

The C4ADS report also raised US players' concerns over China's strong control of nickel. This condition makes US and European electric car manufacturers less profitable. The West's position is under pressure in competition in the global electric vehicle market.

But on the other hand, trade policy with China is getting stricter. Especially, in that of US President Donald Trump's leadership.